National Electric Mobility Mission Plan

National Electric Mobility Mission Plan

The Government of India launched the National Electric Mobility Mission Plan (NEMMP) 2020 in 2013. It aims to achieve national fuel security by promoting hybrid and electric vehicles in the country. There is an ambitious target to achieve 6-7 million sales of hybrid and electric vehicles year on year from 2020 onwards. Government aims to provide fiscal and monetary incentives to kick start this nascent technology. With the support from the Government, the cumulative sale is expected to reach 15-16 Million by 2020. It is expected to save 9500 Million Liters of crude oil equivalent to Rs 62,000 crore savings. The government has launched the scheme namely Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME India) under NEMMP 2020 in the Union Budget for 2015-16 with an initial outlay of Rs 75 crore. The scheme will provide a major push for early adoption and market creation of both hybrid and electric technologies vehicles in the country. The thrust for the Government through this scheme will be to allow hybrid and electric vehicles to become the first choice for the purchasers so that these vehicles can replace the conventional vehicles and thus reduce liquid fuel consumption in the country from the automobile sector. It is envisaged that early market creation through demand incentive, in-house technology development and domestic production will help industry reach a self-sufficient economies of scale in the long run by around the year 2020.

As per the data available, around 42,000 electric vehicles were sold in 2012-13 and nearly 20,000 hybrid and electric vehicles were sold in 2013-14. In the year 2012-13, most of the electric vehicles sold were electric low speed scooters. It is expected that with the launch of the aforementioned scheme, market for hybrid and electric vehicles will gain momentum for all the vehicles segments including 2W, 3W, 4W, LCVs and Buses.

In the aforementioned Government plans to incentivize buyers while purchasing these hybrid and electric vehicles by providing monetary support. Department of Heavy Industry, M/o HI&PE has finalized the details of the scheme including the monetary support for various hybrid and electric vehicles (incentive per vehicle-technology segment) under the FAME scheme just approved. The incentive shall be administered through an efficient and effective electronic mechanism/portal for incentive disbursement. Under this mechanism the manufacturer will reduce the purchase price of a hybrid and electric vehicle (the purchase price will be reduced by the level of the eligible predetermined incentive amount) at the time of selling to the buyer, and the same will be reimbursed to them by the Government.

This information was given by the Minister of State in the Ministry of Heavy Industries and Public Enterprises G.M. Siddeshwara in reply to a written question in the Lok Sabha on Tuesday (March 10, 2015).